State Rules Out Extension of Duty Waiver on Maize in Kenyan

The government of Kenyan has ruled out extending the duty waiver on maize imports which is set to expire at the end of this month, even as millers warned of a looming shortage of the national staple.

The Ministry of Agriculture has advised Treasury that there will be sufficient supply of maize, indicating that it will not support the millers'request for a six-month extension of the import duty waiver.

"With the ongoing harvest of the long rains maize, the expected bumper harvest of the short rains crop and imports, the food security situation is expected to remain stable for the next seven months," said the ministry in a report released last week.

In an interview, Treasury permanent secretary Joseph Kinyua had said extension of the maize import duty waiver would depend on the ministry's assessment of the food security situation.

The Ministry of Agriculture said ongoing harvests in the South Rift region and expected produce in the months of January and February in the Eastern region, together with inflows from East Africa Community (EAC) neighbours, will boost the country's stock to a surplus of 6.4 million bags.

It is estimated that Kenya currently has 16.6 million bags, adequate to sustain the country till March at a monthly consumption rate of 3.6 million bags per month.

Cereal Millers Association had requested an extension of the duty free importation window that expires on December 31, arguing that the local production would only push the country to March, after which shortages are expected to exert pressure on retail prices. A senior agriculture ministry official told the Business Daily that it would not be backing the request.

"The quantity required from countries outside the EAC (which does not attract import duty) may not be much to raise consideration for a waiver." said the senior official who requested anonymity as he is not authorised to speak to the press. "Let the millers wipe the local produce first," he added.